29.03.2015 Views

Untitled - Oxfam Blogs

Untitled - Oxfam Blogs

Untitled - Oxfam Blogs

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Impacts of Price Hikes<br />

on the Lives and Livelihoods<br />

of the Rural Poor<br />

Figure 3.7: Production accounting for Cassava in Xy commune (Huong Hoa, Quang Tri)<br />

12000<br />

Cassava in Quang Tri<br />

'000 VND per hectare<br />

10000<br />

8000<br />

6000<br />

4000<br />

2000<br />

0<br />

Crop<br />

2006/2007<br />

Crop<br />

2007/2008<br />

Gross income<br />

Transaction<br />

Transportation<br />

Buying food for<br />

mutual harvesting<br />

Source: Data provided by local people in Xy and processing enterprise (August 2008)<br />

Cassava farmers are worse off when income is converted into rice. In 2007 they could sell the output of<br />

one ha of cassava and buy 1.6 tons of regular rice or 1.4 tons of sticky rice. In 2008 they can only buy<br />

0.9 tons of regular rice (down 43 percent) or 1.1 tons of sticky rice (down 19 percent) (Table 3.6).<br />

As output begins to decline farmers react by expanding the total acreage in order to maintain the same level<br />

of income. However, available land in new residential areas is limited while they can not return to their former<br />

residential area for cultivation because there is no road access for vehicles. In response to soil degradation they<br />

use the traditional methods of crop rotation. However, given the growing population and lack of land, such a<br />

solution becomes increasingly difficult to implement. It is projected that the output of the next crop 2008/09<br />

will be further reduced. This represents a real challenge to poverty reduction efforts in Xy commune.<br />

Table 3.6: Correlation between cassava sales and rice purchase in Xy commune<br />

(Huong Hoa, Quang Tri)<br />

Crop<br />

2006-2007<br />

Crop<br />

2007-2008<br />

Rise (+) /Fall (-)<br />

( percent)<br />

Total cassava acreage of the commune (ha) 199 244 + 22.6<br />

Fresh cassava output (ton) * 2,800 2,500 - 10.7<br />

Average cassava productivity (ton/ha) 14.07 10.25 - 27.1<br />

Average selling price (VND/kg) 700 1000 + 42.9<br />

Average value of output (VND) 9,849,000 10,245,900 + 4.0<br />

Buying price of regular rice (VND/kg) 6,000 11,000 + 83.3<br />

Buying price of sticky rice (VND/kg) 7,000 9,000 + 28.6<br />

Cassava output converted to regular rice output (kg) 1,642 931 - 43.3<br />

Cassava output converted to sticky rice output (kg) 1,407 1,138 - 19.1<br />

(*) Fresh cassava output is calculated according to data obtained from the processing plant, exclusive of a small amount of dried cassava<br />

Source: Reports of Xy commune and data of the tapioca processing plant (July-August 2008)<br />

Poor people with small scale production are worse-off. As cash income or income converted into PPP<br />

decreases, the effect of economies of scale becomes more apparent at all the study sites. The maize farmers<br />

in Dak Lak say “if we can cultivate 2-3 ha then we will be able to save some money. If we do less than one<br />

ha then we will not”. The poor often have limited access to land and can not expand or hire more land as<br />

the non-poor do.<br />

41

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!